IMF Names Representative To Zambia In Sign Of Thawing Ties

The International Monetary Fund (IMF) have named a new representative to Zambia - two years after the post was last filled - signalling a possible easing of tensions with the country as it stands on the edge of default.

Preya Sharma, a former special assistant to the director of IMF’s Africa department, will replace Alfredo Baldini, who left the post in 2018 following a breakdown in Zambia’s relations with the lender.

The appointment could not come at a more vital time, as Zambia looks poised to default on its $3bn worth of Eurobonds. Last month the country asked its creditors to agree to a six month moratorium on interest payments, which lenders look set to refuse.

At a meeting earlier this week, Zambia’s creditors failed to achieve quorum on the matter, postponing the vote until November 13th, at which point the country will officially enter into default.

The government has repeatedly approached the IMF for debt relief in the past, including asking for a special Covid-19 credit facility. However the lender has refused to offer additional lines of credit until the government agrees to massive debt restructuring plans.